Urban Outfitters Readies New Chain

PHILADELPHIA-Net sales and earnings rose 22% and 24%, respectively, for Urban Outfitters Inc. during the second quarter ended July 31. Comp-store sales company-wide were up 5% in an uneven mix of performance among the three existing brands.

Comp-store sales at Anthropologie units, which had slipped earlier in the year, made a double-digit recovery to increase 14% this second quarter. Free People’s comps lifted 28%. Comps at Urban Outfitter, however, dropped 3%. Meanwhile, the company announced the name of a fourth brand concept, Terrain, which is being readied for launch in 2008.

While applauding the Anthropologie turnaround and positive results for Free People and direct sales, “we’re disappointed in Urban Outfitters North American retail sales,” said Glen Senk, newly appointed CEO, during a conference call. “It is a priority to bring it back to optimum performance. It’s an assortment issue, not a style issue,” he added, suggesting “there was not enough of an assortment to drive traffic.